NextEnergy Capital secures £733m for UK solar fund, exceeding target by 50%

NextEnergy Capital's NextPower UK ESG fund, a private initiative targeting the UK's burgeoning solar energy market, concluded its fundraising with a total of £733 million, significantly surpassing its initial goal of £500 million. This accomplishment reinforces the UK's commitment to its Clean Power 2030 ambitions, focusing on increasing domestic green energy production to ensure energy security and reduce carbon emissions. The National Wealth Fund served as a cornerstone investor, contributing £250 million on a match-funding basis to galvanize private investment into UK renewables. The fund has already deployed over 70% of its capital and acquired 15 solar assets, elevating its portfolio capacity to 731MW. The fund aims to have over 1GW of capacity once fully deployed, contributing substantially to the UK’s goal of trebling its solar capacity over the next five years. Despite a challenging global fundraising environment, the fund drew interest from local and international investors, leveraging UK's strong market fundamentals and supportive policies as attractive investment destinations. The fund is classified under Article 9 of the EU SFDR, reflecting its high adherence to sustainability standards by significantly reducing the UK’s carbon footprint and enhancing biodiversity.